VA Wholesale to operate under Bank of Glen Burnie

The Bank of Glen Burnie, a Maryland-based depository, has acquired VA Wholesale Mortgage, a Virginia Beach, Virginia-based originator, with an office in Jacksonville, Florida. Terms of the deal were not disclosed.

A check of the NMLS Consumer Access page has Virginia Wholesale Mortgage, how the Bank of Glen Burnie's second quarter Securities and Exchange Commission filing refers to the entity as, as a prior legal name.

Where VA Wholesale operates

While a press release lists VA Wholesale as a mortgage broker, the company has lender licenses in Maryland, Tennessee and Virginia.

It has broker licenses in the District of Columbia, Florida, Georgia, North Carolina and Virginia, and a mortgage company license in Texas.

Plans are for VA Wholesale to operate as a dedicated division of the Bank of Glen Burnie for the foreseeable future.

VA Wholesale began lending in early 2020 and specializes in working with active-duty and retired members of the military through the Veterans Affairs and Federal Housing Administration programs. It also offers conventional, jumbo and non-qualified mortgage products.

The Bank of Glen Burnie will provide capital to fund the mortgage company's growth, said Mark Hanna, president and CEO of both the bank and its parent company Glen Burnie Bancorp, in a press release.

Integrating VA Wholesale into the Bank of Glen Burnie

The plans call for the bank to grow the mortgage team with originators in Anne Arundel County, where the bank is located with six branches, and expand as demand increases, Hanna said.

VA Wholesale will allow the bank to grow its mortgage offerings in terms of both product and geographic reach, "much faster than we could organically," Hanna said.

Besides FHA and VA, the mortgage company expertise in working with first-time home buyers and those that need to make a lower down payment.

"This accomplishes the goal of The Bank of Glen Burnie serving our growing customer base at a higher level, including the small business owners, their employees, and families who have chosen to bank with us," Hanna said.

In 2024, VA Wholesale Mortgage closed approximately $125 million. It has 17 sponsored loan originators, according to the NMLS. The Bank of Glen Burnie has 15; its status as a federally insured depository means it does not need state licenses.

VA Wholesale Mortgage CEO Eric Tan, a U.S. Navy veteran, will remain with the company under the new ownership.

"Having a committed funding source will broaden our reach, allowing us to grow and meet the needs of our customers more readily, while also increasing lending volume," Tan said.

Milestone Mergers and Acquisitions, based in Fairfax, Virginia, assisted the Bank of Glen Burnie in this transaction.

Recent acquisitions of smaller mortgage originators

Among recent M&A transactions in the mortgage business, Anniemac purchased two Florida-based companies in recent weeks. It started with Florida Funding, a $600 million volume originator headquartered in Orlando during July. Last week Anniemac bought Home Solution Lenders of Bartow, a $200 million shop.

Another deal from last week involving a depository brought together Great Lakes Credit Union with Fit Mortgage, based in Birmingham, Alabama and licensed in five southern states.